HM Revenue & Customs (HMRC) has called for charities in Scotland to bid for part of the £2.33 million it has made available for projects helping people manage debts, and giving information about benefits and taxation.

HMRC has £1.05 million to award for 2009/10 and £1.28 million to award for 2010/11 to charities, community groups, voluntary bodies, co-operatives and social enterprises.

The funding is intended to help third sector organisations reach the most financially vulnerable people, helping to deliver important information services so individuals can access the proper benefits and support.

"Many vulnerable people don't claim benefits that they are entitled to. This money will assist the people who need it most. Our aim is to ensure also that people are made aware of how they can reduce their debts and pay the right tax," said Derek Tilstone from HMRC.

Last year funding was given to organisations including One Parent Families Scotland, Council of Ethnic Minority Voluntary Sector Organisations (CEMVO) Scotland, Citizens Advice Bureau (CAB) Inverness and CAB Roxburgh.

The applications deadline is 12 November, with successful applicants being informed by 19 January next year.

The funding call comes shortly after Citizens Advice reported a substantial jump in debt advice queries on mortgages and loans, and as stock markets crash amid fears of a serious global recession.